Tlou announces entitlement offer to raise A$10.65mn

Tlou Energy, an Africa-focused company, on May 12 announced a partially underwritten entitlement offer to raise approximately A$10.65mn ($7.1mn) for its gas-to-power project in Botswana. Eligible shareholders can subscribe to four fully paid ordinary shares for each 11 fully paid ordinary shares held on May 18.

The funds raised, combined with existing capital, will be used to develop Tlou’s power projects, including drilling gas production wells, constructing transmission lines and substations to connect the Lesedi project to the electricity grid, purchasing land and constructing an operations and generation facility, and meeting general working capital requirements.

Tlou recently began drilling the Lesedi 6 gas production pod as part of the next phase of drilling at its Lesedi coalbed methane project in Botswana. The gas produced from Lesedi 6 will be used for electricity generation for the existing 10 MW power purchase agreement with Botswana Power Corporation once the transmission line, substations, and associated electrical infrastructure are in place.

Lesedi 6 is the first well of a proposed drilling programme aimed at expanding gas production at the Lesedi power project.